GST Refund Process in India — How to Apply, Timeline and Documents 2025

GST refunds are available in several situations — for exporters who accumulate ITC, businesses with inverted duty structure, tourists and others. Knowing how to claim a refund correctly and on time can recover significant amounts of working capital. This guide covers the complete refund process under GST in India for 2025.

Situations Where GST Refund is Available

• Export of goods or services (ITC refund under LUT or IGST refund under payment route)
• Inverted duty structure (where input tax rate is higher than output tax rate)
• Excess cash paid in electronic cash ledger
• Tax paid on intra-state supply subsequently held to be inter-state supply
• Refund due to assessment or appellate order
• Provisional assessment settlement
• Refund by tourist for goods purchased in India (visited temporarily)

Time Limit for Claiming Refund

A refund application must be filed within 2 years from the "relevant date" — which varies based on the type of refund. For export refunds, the relevant date is the date of export (for goods) or the date of receipt of foreign exchange (for services). For excess cash balance, it is the date of payment.

How to Apply for GST Refund — Form RFD-01

Step 1: Log in to the GST portal and navigate to Services → Refunds → Application for Refund.

Step 2: Select the refund type and the relevant tax period.

Step 3: Fill in Form RFD-01 with details of refund amount, ground of refund and supporting details.

Step 4: Upload supporting documents (see below).

Step 5: Submit the form with DSC or EVC. An ARN is generated.

Documents Required

• Statement of invoices (for ITC refund on exports)
• Bank Realisation Certificate or FIRC (for export of services refund)
• Shipping bill / export invoice (for goods export)
• Statement of inward and outward supplies (for inverted duty refund)
• Declaration that ITC has not been transferred to another person
• Undertaking regarding passing on the benefit to consumers

Processing Timeline

The GST officer must acknowledge the refund application within 15 days. A provisional refund of 90% of the claimed amount is sanctioned within 7 days for exporters with clean compliance records (Rule 91). Final sanction must be issued within 60 days of the date of receipt of a complete application.

If the refund is not processed within 60 days, the department must pay interest at 6% per annum on the delayed refund amount.

Common Reasons for Refund Rejection

• GSTR-1 not filed or outward supply invoices not uploaded
• Mismatch between export invoices and GSTR-1 data
• FIRC not linked or incomplete
• Application filed after the 2-year time limit
• Unjust enrichment (applicant already passed the tax burden to consumers)

Conclusion

GST refunds are a legitimate mechanism to recover working capital, but require precise documentation and timely applications. SPOTON's GST team handles refund applications for exporters, inverted duty cases and other eligible businesses across Kerala. Contact us to check if you have unclaimed GST refunds.